European Shares To See Cautious Start As US Inflation Data Looms

(RTTNews) - European stocks are seen opening on a subdued note Wednesday as investors await U.S. consumer price inflation data later in the day that might show that price pressures accelerated in August from the prior month due to rising fuel prices and strong consumer spending.

Economists currently expect the annual rate of consumer price growth to accelerate to 3.6 percent in August from 3.2 percent in July, while the annual rate of core consumer price growth is expected to slow to 4.4 percent from 4.7 percent.

The inflation report could have a significant impact on the outlook for interest rates ahead of the Federal Reserve's monetary policy meeting next week.

Ahead of the data, CME Group's FedWatch Tool currently indicates a 93.0 percent chance the Federal Reserve will leave interest rates unchanged next week.

The outlook for November is a little more uncertain, with the FedWatch Tool indicating a 40.9 percent chance of another quarter point rate hike.

Asian markets were flat to slightly lower in cautious trade and the dollar held steady while oil hovered near 10-month highs as OPEC forecast an increase in demand during 2024.

Monthly GDP, industrial output and foreign trade data from the U.K. and industrial production from the euro area are due later in the session, headlining a light day for the European economic news.

U.S. stocks ended lower overnight as surging oil prices deepened worries about inflation and Oracle issue weak guidance.

The tech-heavy Nasdaq Composite lost 1 percent, the S&P 500 slipped 0.6 percent and the Dow finished marginally lower.

European stocks fell broadly on Tuesday as investors braced for a slew of economic data and the ECB policy meeting.

The pan European STOXX 600 eased 0.2 percent. The German DAX dropped half a percent and France's CAC 40 shed 0.4 percent while the U.K.'s FTSE 100 edged up 0.4 percent.